Competition Authority of Kenya has approved the acquisition of Cemtech by Devki Group owned Simba Cement. Cemtech is a subsidiary of Indian conglomerate Sanghi Group.
“The proposed transaction, therefore, involves the acquisition of 100% of the business and assets of Cemtech by Simba Cement, the merged entity is unlikely to raise adverse competition concerns. Further, the merged entity will face competition from other cement manufacturers,” CAK stated in its report.
The agency further noted that following the transaction, there would be no change in the market share and the merged entity will have a share of 8%. Cemtech plans to complete the construction of the factory in 18 months and production of cement, which is estimated to be 24 million bags per year is set to begin four months later.
CAK has also confirmed that Cemtech has obtained certifications and approvals to break the ground for the construction of a Sh 12 billion cement factory in West Pokot County.
CAK expressed confidence that the proposed acquisition by Simba is a strategic move as it will resuscitate, Cemtech which has been dormant for a while, create jobs and raise the economic profile of West Pokot County.
